Jordan,You need to do your homework on the property and other lien holders who you could become liable too as you suspect.

He is open to Seller financing and in some ways prefers it as his father is the lien holder and isn't looking to pull his money out.

Here is a list of prohibited persons:Examples of disqualified persons for IRAs or 401(k)s are: The IRA holder and his or her spouseThe IRA holder’s lineal descendants (children, grandparents, etc.)

Account holder is prohibited from doing ANY work on the property. 

If there is yet another party let us say between the second investor buying the contract from the first wholesale and an end retail buyer then the part you are concerned about is still handled in escrow at the title company so that they mortgage if existing will get paid off by the title company to the mortgage holder if such a mortgage exists.

The 2nd for separating the water $3-5000.Now, in my case, the ROI on executing is only supported by my hold philosophy; contrarily, this could be a selling point from a flipper to a long term holder but, I doubt the inverse is applicable.

You can either do a US Dollar loan, which his easier and faster, or a Peso loan through a Mexican bank, which requires a migration visa and establishment credit and banking history in Mexico.

@Dawn Anastasi  there are few Dawn's in the US.... keep that in mind vis a vi safety.

(The idea here is that if there is a meltdown, the equity holders are the ones that will get killed, and I will be the one foreclosing on them and owning the properties to recover principal).

They gave me a BELOC for 25% of deposits, very high limits, business Visa, PELOC   for me, and  credit lines with the BLOC"s and  $150 annual and you get a business mgr in the lobby you can email for anything.